Strategic SMSF Advice in Brisbane

What Is an SMSF?

SMSFs are a legal tax structure with the sole purpose of providing for your retirement. SMSFs are regulated by the Australian Taxation Office (ATO). Here are important facts about SMSFs:

• An SMSF can have up to 6 members.
• An SMSF is a trust structure and must have a trustee. There are two options: Corporate Trustee Structure or Individual Trustee Structure.
• Generally, SMSF trustees will use one central bank account to receive contributions and use that account to make investments.
• An SMSF must have a Trust Deed that sets out the governing of the SMSF.
• An Investment Strategy must be in place that states how you plan to invest the SMSF assets.
• A Binding Death Nomination will state who you would like your super benefits to be paid in the event of death.
• Annual tax returns and audits must occur every year.

Is a Self-Managed Super Fund Right for You?

According to the Association of Superannuation Funds Australia (ASFA), SMSFs may be the right choice for you if you:

• Are very knowledgeable about finance and legal matters.
• Have a sufficient sum of money in superannuation to justify the set up and yearly running costs.
• Have sufficient cashflow for ongoing expenses including professional accounting, tax, audit, legal, and financial advice.
• Have sufficient spare time to research, manage, and check your super investments regularly.
• Have life insurance, including income protection and total and permanent disability cover.

Why Opt for an SMSF?

There are several reasons why individuals choose a self-managed superannuation fund:

Greater Control Over Investment Choices

With an SMSF, you have the ability to invest in a wide range of assets, including Australian and international shares, managed funds, real property, and more. This allows you to tailor your investment strategy to your specific goals and risk tolerance.

Flexibility in Estate Planning

SMSFs offer greater flexibility in estate planning, allowing you to specify how your superannuation benefits will be distributed to your beneficiaries upon your passing.

Potential Tax Benefits

SMSFs can help provide potential tax advantages, such as the ability to invest in business real property and take advantage of tax concessions for retirement income streams.

Ability to Invest in a Wider Range of Assets

Unlike traditional superannuation funds, SMSFs allow you to invest in a broader range of assets, including unlisted shares, collectables, and direct property.

What Are Your Responsibilities as an SMSF Trustee?

As an SMSF trustee, you have various responsibilities, including:

• Developing and implementing an investment strategy: You must formulate and implement an investment strategy that considers the fund’s objectives, risk tolerance, and liquidity requirements. This strategy should be regularly reviewed and updated as necessary.
• Ensuring the fund remains compliant with superannuation laws: SMSF trustees must ensure that the fund complies with all relevant superannuation laws and regulations, including contribution caps, investment restrictions, and reporting obligations.
• Maintaining accurate records and financial statements: Trustees are responsible for keeping accurate records of the fund’s transactions, preparing financial statements, and arranging an annual audit by an approved SMSF auditor.
• Arranging annual audits and lodging tax returns: SMSFs must undergo an annual audit by an independent, ASIC-registered auditor. Trustees must also lodge an annual tax return with the ATO.

You Can’t Do It All Yourself

Despite some people calling SMSFs ‘do it yourself super’ or ‘DIY funds’, you will have to work with some other people to meet your obligations.

You will need an independent self managed superannuation funds auditor who is registered with ASIC to complete your fund’s audit each year.

In some circumstances, you will need a qualified actuary to provide you with an actuarial certificate.

Each year, you need to value your assets at market value. In some circumstances, you will need an independent valuer who is qualified to do this; for example, to value a property.

You may also work with:

• An Administrator who will manage most of the day-to-day running of the SMSF (in other words, SMSF administration tasks). The legal and tax responsibilities are still yours, even if you use an administrator.
• An Accountant to prepare financial accounts, statements, tax returns, and other accounting needs. 
• A Financial Adviser for investment and strategic advice.
• An Estate Planner to ensure your money goes to the right people at the right time. 

How We Can Help With Your SMSF Needs 

The team at Varria can assist you with the investment component and structure most appropriate for your needs. SMSFs and Estate Planning is a complex area, but with our experience, we will help to make sure your money goes to the right people at the right time. We are able to facilitate the estate planning process with an estate planning professional.

We will recommend an investment strategy that is in line with your risk profile and incorporates your ideas about investing within your SMSF. We make the recommendations. You make the decisions.

What Will Your SMSF Cost in South East Queensland?

The costs of setting up and running an SMSF vary depending on, among other things, your circumstances, super balance, investment strategy, and how you choose to manage your fund. The more complex you make it, the more it is likely to cost.

The Importance of Estate Planning for Your Superannuation and Self Managed Super Fund

Estate planning is a critical aspect of managing your SMSF, as it ensures that your assets are distributed according to your wishes in the event of your death or incapacitation. Our dedicated SMSF specialists in Brisbane, the Sunshine Coast, and Toowoomba can help you:

• Develop a comprehensive estate plan
• Implement binding death benefit nominations
• Consider the tax implications of your estate planning decisions
• Review and update your estate plan as your circumstances change

By addressing estate planning early on, you can provide peace of mind for yourself and your loved ones.

Take Control of Your Financial Future and Contact Us Today

If you’re ready to explore the benefits of an SMSF and receive expert guidance from our financial advisers in Brisbane, the Sunshine Coast, or Toowoomba, we invite you to get in touch with Varria today.

Our knowledgeable staff are here to answer your questions, provide advice, and support you every step of the way. Whether you’re setting up a new SMSF or seeking superannuation advice for an existing fund, we’re committed to helping you achieve your retirement goals.

To discuss your SMSF needs, please contact us at 07 3029 5400 or enquiries@varria.com.au. We’re here to provide the expert recommendations and personalised service you need to achieve your dream financial future.